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FISME congratulates BJP; says Govt should implement recommendations of Expert Committee on MSMEs set up by RBI

Updated: May 23, 2019 11:12:48am
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New Delhi, May 23 (KNN) The Federation of Indian Micro and Small & Medium Enterprises (FISME), an apex body of MSME associations in the country, congratulated Bharatiya Janata Party (BJP) for its historical win in Lok Sabha Elections 2019 and pinned hope that the government will work towards reviving the country’s MSME sector facing distress.

Commenting upon the poll results, FISME President Animesh Saxena told KNN India, “MSME sector is passing through deep distress born out of the combined effects of demonetisation, GST and slow economic growth. Due to upheaval in Banking and finance sector and insolvency process of large corporates, MSMEs are facing problems of unpaid bills, bad debts and NPAs.”

He said FISME feels that the first thing the Government should do is to implement the recommendations of Expert Committee on MSMEs set up by RBI under the chairmanship of U.K. Sinha which are likely to be presented by June end.  

The Reserve Bank of India (RBI) had constituted an ‘Expert Committee on Micro, Small & Medium Enterprises (MSMEs)’ in January under former SEBI chairman UK Sinha to understand the structural bottlenecks and factors affecting the performance of the sector.

The panel is undertaking a comprehensive review to understand the causes and propose long term solutions besides it also wants to know about the infrastructure gaps and problems affecting the development and growth of MSME clusters.

FISME President further said that, “Functioning of MSMEs is really hamstrung because of excessive litigations and breakdown of arbitration mechanism. Most of these litigations are with Government departments or agencies. Inducing reforms in arbitration and enabling quick redressal of disputes would have similar effect as that of Tax breaks for development of MSMEs.”

As BJP is set for a landslide victory, Prime Minister Narendra Modi today said "India wins yet again".

"Together we grow. Together we prosper. Together we will build a strong and inclusive India. India wins yet again! #VijayiBharat," PM Modi tweeted this evening. (KNN Bureau)

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